ASM Malawi June 2016 by Prof Nellie Mutemeri
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Transcript of ASM Malawi June 2016 by Prof Nellie Mutemeri
Artisanal and Small-scale & the Africa Mining Vision
Dr Nellie Mutemeri nmConsulting
Associate Professor -‐ School of Mining Engineering, Wits University, South Africa ([email protected]; +27-‐71-‐606 1996)
AMDC Communication Workshop, Malawi 31 May -‐ 2 June 2016
Mainstream ASM! Don't Ghettoise it!!!
Outline of Session The objectives of the session is share to information on the following:
• What is artisanal and small-scale mining (ASM)?
• The Precarious world of ASM
• ASM in Africa
• Gender and ASM
• ASM and Development in Africa
• Regional Knowledge Hub
Definition & Categorisation of ASM
Global Categorisation ▪ Formal versus informal ASM (usually a development practitioner construct)
• Formal implies ASM practised within legal boundaries and according to certain norms. • Informal is usually used for ASM which is practised strictly outside the law but on which is
conferred a certain level of legitimacy or acceptance because it is an important livelihood for poor communities
▪ Legal versus illegal versus extra-legal ASM • Legal – ASM that is practiced within documented law • Illegal – ASM that is practiced outside the law • Extra-legal – ASM that is practiced outside the prevailing law, but the regulator or
government authorities allow it for expediency
Artisanal and small-scale mining (ASM) includes all the activities concerned with mineral searching (i.e. prospecting), ore extracting, processing and trading of mineral product, when the activities apply simple methods, low levels of capital and technology and are labour intensive. The distinction from industrial scale is subjective and tends to be user specific.
#This definition above takes no position on legality or formality; which is determined from the way ASM is practised in relation to the laws of the particular country. Below are some of the globally accepted ASM categories.
# Below are some of the ASM types based on the drivers (i.e. the reason people enter the ASM sector). 1) Traditional (present for many generations), 2) Seasonal (as an alternative to agriculture), 3) Influx (driven by a new “find”), 4) Shock (driven by economic down, conflict, retrenchment, drought commodity prices etc.)
ASM Legal classification
This is a relative classification usually with what appear to be “arbitrary” boundaries set in the law, concerning size and type of operation; sometimes distinguishing between artisanal mining and small-scale mining, based on:
• Capital applied, i.e. level of investment • Methods of production, usually reflected in
level of mechanisation permitted
• Production capacity sometimes in terms of throughput, output or number of workers
5
Global Scale of the ASM Sector
▪ Global estimates of people involved in ASM: • ~20-30 million people across 80 countries involved (IIED
Report, 2013). • ~30% of whom are women, also a large involvement of
children ~10% (ILO Report, 2009) • ~90% of employment in the gold sector is in ASM, i.e. ~15
million people in +70 countries (UNEP Report, 2013)
Extent of ASM in Africa 150000
150000
200000
200000
200000
250000
300000
400000
400000
400000
450000
500000
500000
500000
1500000
2000000
Angola
Uganda
Sudan
Mozambique
Burkina Faso
Ghana
Sierra leone
Mali
Eritrea
CAR
Niger
Zimbabwe
Nigeria
Ethiopia
Tanzania
DRC
• Estimate of 9 million ASM workers in Africa, making this by far the largest mining workforce on the continent.
• Minerals exploited include gold, diamonds, copper, cobalt, tin, tantalite, tungsten,
industrial minerals and construction materials like sand, clay and dimension stone.
African countries where the miner population is estimated as greater than 150,000, account for ~92% of the total miner population on the continent. (Source: PACT, “2008 Regional Workshop: Small-scale Mining in Africa - A Case for Sustainable Livelihood”)
Nature of ASM
Most actors being caught in a poverty trap
Exploitation of the following minerals: • Precious minerals – gold, diamonds
and other precious stones e.g. emeralds, sapphires, rubies, tanzanite etc.
• Base metals - coltan, tin, tungsten, cobalt, copper
• Also industrial minerals and construction materials
• Negative social impacts including child labour, forced labour and other forms of exploitation, gender based violence, general criminality etc.
• Exploitation of marginal deposits • Conflict with large-scale mining companies & other land uses
• ASM being one of limited (sometimes the only) livelihood options for rural communities
• Negative environmental and health impacts, leading concerns being mercury pollution, land degradation, spread of communicable diseases etc.
ASM (legal/illegal) is often associated with the following:
• Undercapitalised, inefficient and unviable operations Illicit minerals trade, associated armed
conflict and civil strife
ASM: A Developmental Opportunity Africa
• In spite of its many challenges ASM provides livelihoods for many poor communities in Africa
• If properly harnessed and the negative impacts appropriately addressed it is possible to convert what seems a threat to many to an opportunity which can be the basis for sustainable livelihoods
• There are deposits that lend themselves to optimal exploitation only
ASM relevant Protocols, Initiatives and Practices Type of protocol, initiative or practice
Examples
Issue-specific initiatives: • Mercury pollution, e.g. UNEP’s Global Mercury Partnership & UN Minimata Convention on Mercury Pollution
• Illicit trade of minerals & associated armed conflict and civil strife, e.g. OECD Diligence Guidance on “conflict minerals” and the Kimberley Process Certification Scheme
• Child labour: ILO Convention 182 on “worst forms of child labour” Private sector accountability and responsibility
• ICMM Guidance – “Working Together – how large-scale miners can engage artisanal and small-scale miners”
• IFC Performance Standards – especially Performance Standard 1 • Global Reporting Initiative – Mining and Metals Supplement
Indicators • Voluntary Principles on Security and Human Rights • “Conflict-free gold standard” developed by World Gold Council • Dodd-Frank Wall Street Reform and Consumer Protection Act
(Section 1502, on conflict minerals from the Great Lakes Region) ASM sector transformation
• CASM (Communities and Small-scale Mining) a World Bank Network Program
• Alliance for Responsible Mining (ARM) supporting formalisation • Africa Mining Vision (2009) with a focus on "...a mining sector that
harnesses the potential of ASM ..”
Gender & ASM • Why it is important to consider gender in ASM
• Gender roles in the ASM value chain
• Gender and ASM framework:
Strategic gender needs
Practical gender needs
"Gender Dimensions of Artisanal and Small-‐Scale Mining a Rapid Assessment Toolkit" By: Adriana Eftimie, Katherine Heller, John Strongman Jennifer Hinton, Kuntala Lahiri-‐Dutt, Nellie Mutemeri With: Chansouk Insouvanh, Michael Godet Sambo, and Susan Wagner
Why Gender & ASM? Key points to note: • "Understanding that men and women play different roles in the
community and face different constraints is critical to understanding how they are differently involved in and affected by ASM, and to designing interventions to maximize development opportunities."
• At a global level ~ 30% of the ~20 million people in ASM are women, in Africa ~50% of the ~9 million artisanal miners.
• The precarious nature of ASM has very adverse impacts on women and other vulnerable groups.
• Women are critical to community stability and can facilitate positive change.
• ASM is unlikely to develop optimally without gender mainstreaming.
Gender roles of the ASM value chain
Mining Value Chain
Prospec3ng Mining Processing
Beneficia3on
Marke3ng
Gender roles of the ASM value chain
• Women’s lives are dominated by their reproductive role, and men’s by their productive roles.
• There is conflict between reproductive and productive roles, where women have productive activities outside the home there is juggling
• The dominant productive role for women at mining sites is trading
• Limited women’s participation in the mining value chain as buyers
• Lower capacity in women for strenuous digging and cultural taboos in ASM are often cited reasons for exclusion from digging, presence of more women in processing and services
Gender & ASM Framework
A gender and ASM framework is premised on: • The idea that development (for men and women)
is dependent on ownership, access and control of assets.
• Understanding that men and women have different roles in ASM and how this impacts development outcomes.
• Addressing strategic and practical gender needs.
Practical Gender Needs Examples of practical gender needs in ASM include:
• Training to improve skills for ASM and alternative livelihoods
• Appropriate equipment and technology for women, • Improving viability of ASM • Awareness of the health and safety issues in ASM • Information and services to optimise benefits from ASM • Formalising existing gender equity practices • Facilitation of access to finance through training,
appropriate financial products for women and better information dissemination by financial institutions (enable women to participate as entrepreneurs employing men to do the strenuous work)
Strategic Gender Needs • Broader and deeper consultation and participation in
review and development of policies, laws, programs • Empowerment of women for effective participation in
consultative forums etc. to advocate for change and equitable access to capacity building programs
• Provide platform for review of traditions, cultural norms and community practices
• Gender analysis for programs and interventions • Improve literacy in women • Improve understanding of the law • Awareness raising of the benefits of empowering
women • Mining activity data should be gender disaggregated • More research on gender in mining
ASM & Development in Africa
• ASM and the Africa Mining Vision (AMV)
• Actualisation through the AMDC Action Plan
• Transformation of the ASM sector
ASM & Africa Mining Vision • AMV (Key tenet on ASM): "Harnessing Artisanal and Small Scale Mining -
Integrate sector to improve rural livelihoods; Integrate to improve rural economy, upgrade skills, technology, etc.
• The AMDC Results Area on ASM: • The Goal is to create a mining sector that harnesses the potential of
artisanal and small-scale mining to advance integrated and sustainable rural socio-economic development
• Key actions include developing policies, laws and regulations that promote a viable and sustainable ASM sector, and where possible to embed ASM into broad-stream rural development strategies. It also seeks to develop programmes to upgrade the knowledge, skills and technologies used in the ASM sector, and generally to develop institutional capacities that support a viable ASM sector.
• The outcomes will be: • A viable and sustainable artisanal and small-scale mining sector; • Strengthened capacities of ASM operators; and • Reduced negative environmental, health and welfare impacts from ASM
Country Mining Vision - Questions • Is there an adequate policy framework for artisanal and small- scale mining (ASM)
and is it optimally aligned with the broad national / regional / local development agenda, including rural development plans?
• Are the existing laws aligned with the policies to facilitate ASM transformation?
• What factors promote the widespread existence of illegal / unregulated ASM?
• To what extent can these be managed?
• What policies / strategies / actions can best encourage regulation? Do institutional and administrative structures for promoting streamlined ASM exist and are they adequate?
• Are there adequate training, mentoring and other programmes for building ASM capacity?
• Does the ASM framework provide for access to requisite geo- scientific information?
• Is the environment for ASM conducive for finance and marketing opportunities?
Regimes for Administration of ASM Sector ▪ ASM is usually provided for as part of the broader mining policy
and legislative frameworks, and these provide for: • ASM category of mining right or permit/license (sometimes
distinguishing between artisanal and small-scale). • Rights and obligations of licensees and permit/right holders
with respect to the following: o Validity, eligibility and restrictions on aerial extent, depth and
operating capacity o Environment, health, safety and social impacts management o Access to land use of other natural resources, e.g. water, timber
etc. o Trading of minerals (sometimes there is a special category of
license) o Records and reports o Taxes, royalties and other levies o Penalties for contravention of the law o Institutional support
ASM in AMDC Plan • Work to date:
ASM study completed
ASM and Gender study completed and published
• Future plans
Formulation of the AMDC ASM Strategic framework
Implementation of key strategic projects, e.g. Establishment of a ASM Knowledge Hub
Alignment with the broader AMDC Action Plan, e.g. ensuring appropriate incorporation of ASM in the Country Mining Visions (CMV)
Alignment with partner initiatives, e.g. EU funded training of Geo Surveys, International Knowledge Hub Initiative
A Regional Knowledge Hub for ASM in Africa
• Objectives of an ASM Knowledge Hub & Strategic alignment to the AMV & the AMDC mandate
• Key Elements of a KH Types & sources of information and knowledge Collation of existing information and knowledge Generation of new knowledge Repositories Dissemination of knowledge
African ASM Regional KH: Objectives & Strategic Alignment An ASM Knowledge Hub (HB) as a strategic option to anchor the ASM program at AMDC
• Key considerations for the AMDC with respect to ASM knowledge generation and dissemination: AMV (Key tenet on ASM): "Harnessing Artisanal and Small Scale Mining -‐ Integrate sector to improve rural livelihoods; Integrate to improve rural economy, upgrade skills, technology, etc. AMDC Vision: To become the Facilitator of choice to enable AU member States realise the Africa Mining Vision.
• AMDC Result Areas 4, 6 & 7 Result area 4: ASM -‐ viable and sustainable sector, strengthened capacity of ASM operators and reduced negative SHEC impacts Result area 6: Building capacity (human and institutions) -‐ competitive skills base, learning outcomes aligned to the AMV economic and social objectives and, skills mobility Result area 7: Communication and Advocacy -‐ strengthened awareness and capacity of stakeholders, increased access to information and knowledge
Objectives of the Knowledge Hub
• Provide virtual location for knowledge repository, on a database
• To allow access or/and ownership to information • Manage data, organizing cataloging etc • Facilitate access and exchange to information and
knowledge
Types and Sources of Information The main types of information will be: • Research outputs on key topics/issues • Profiles of ASM in Africa • Policy and legislation reviews and briefs • Standard, guidelines & tools
The key sources of existing data will include: • Publications • Reports by research institutions including multilateral
agencies like the UN, World Bank and regional bodies like the African Union, African Minerals Development Centre (AMDC), COMESA, SADC, ECOWAS, SEAMIC, ICGLR, IIED.
• National government archives.
KH Implementation Framework The Network - Hub and spokes approach: • Role of the Hub
Hosting the database Coordination of data collation Lead on generation of new knowledge Lead on dissemination of knowledge Infrastructure management, including portals etc. Setting the terms for collaboration and partnerships, proprietorial issues etc.
• Role of spokes Pushing existing data to central repository Supporting generation of new knowledge Supporting dissemination of knowledge
Next Steps
• Establishment of an African Regional ASM Knowledge under the AMDC ASM Strategic Framework
• Partnership with Swiss Agency for Development and Cooperation and the Mongolians
The Precarious World of ASM International & Regional Agreements governing the
ASM Sector
Local Legislation & Institutional Arrangements – Laws Governing ASM in African Countries
Large – Scale Mining Operations
• Role of private sectors in areas of limited statehood.
• Corporate contribution to and effects upon local governance.
THE PRECARIOUS WORLD OF ASM • Exploitation of marginal and/or very small
deposits • Poor access to technology and equipment • Low level of occupational safety & health
care • Insufficient consideration of environmental
issues • Poor qualification of personnel at all levels
of the operation • Chronic lack of working and investment
capital • Inefficiency in exploitation & processing of
mineral production (low recovery value) • Low level of productivity • Low level of wages and income • Sporadic operation by local people by
season or rushes driven by finds market prices etc.
• Illicit trade minerals and associated civil strife
• Land use conflict and competition for resources
• General criminality and exploitation workers especially of children and women
Socio-economic and other drivers • Historical, economic, developmental, geological, social backgrounds and circumstances in African countries are very
different in many cases. • Wide difference with respect to the minerals, more than 50 different minerals are exploited in the region
Security Forces Impact on ASM
• Governance for whom?
• Role of private security forces in areas of limited statehood and problems related to such non-state governance.
ASM POTENTIAL • Giving ASM an equal footing, with large scale mining and not an afterthought, only to be
given what remains after the spoils have been allocated.
• Have country specific regimes not "Copycat" policy and legal provisions should be abandoned. Hopefully the CMV process is going to address this.
• Influencing development funding for the right approaches to funding
• Artisanal and small-scale categories providing a growth path for local entrepreneurs in the minerals sector (Note: Johannesburg & Kimberley where once upon a time ASM sites)
• Looking also to industrial minerals and construction materials
• Consider Human rights based ASM. This looking at ASM developmental approaches with a human rights lens. For example when one considers "unlicensed" mining one looks beyond the illegality, and because one recognizes the right to a livelihood, focus on transformation through formalisation, the issue of illegality is addressed as part of the process.
• An holistic integrated approach that starts with an well informed broadly consulted inclusive policy and legislative framework, whose implementation is supported by strengthened capacity of the administrators at all levels of government as well as that of the operators, the latter not just for efficient operations but also for self-regulation and other forms of local organisation.
Breaking the Poverty Trap of the ASM sector
Large numbers of miners chasing limited resources
Inadequate & inappropriate technology
Low income & lack of
investment opportuni<es
Environmental degrada<on
Low Produc<vity
These are the interven.ons to break the ASM poverty trap
Financial assistance
Technical assistance
Alterna3ve livelihoods Regula3on
Financial assistance Technical assistance Alterna3ve livelihoods
Technical assistance Alterna3ve livelihoods EIA &EMP strategies
Rehabilita3on Alterna3ve livelihoods
Technical assistance Alterna3ve livelihoods
ASM Triangle of Transformation
Transi.on through educa.on access to finance & markets etc.
INFORMAL ASM
ALTERNATIVE LIVELIHOODS
FORMAL ASM
This is about transforming ASM sector through holis<c integrated formalisa<on programs that acknowledge that minerals are was<ng asset and therefore need to be transformed into more sustainable forms of capital for alterna.ve sustainable livelihoods